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Bill Could Discourage Some Local Oil, Gas Rules

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DENVER (AP) — A bill introduced in the Colorado House could bar communities from sharing in state severance tax revenues if they enact oil and natural gas drilling restrictions.

The state distributes severance tax revenues to communities affected by energy development. A bill introduced Friday would prevent communities from collecting their share if they restrict or delay an oil and gas producer’s ability to exercise its mineral rights.

The bill was proposed after disagreements arose between the state and some communities over what aspects of drilling the state can regulate and what counties and towns can regulate.

A task force that Gov. John Hickenlooper appointed to explore the issue has recommended that companies and state regulators collaborate more closely with local authorities without resorting to litigation or new legislation.